Heidi Company Is Considering the Acquisition of a Machine That

question 170

Multiple Choice

Heidi Company is considering the acquisition of a machine that costs $420,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $120,000, and annual operating income of $83,721. The estimated cash payback period for the machine is

• A)3.5 years
• B)5 years
• C)5.1 years
• D)4 years

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Definitions:

Barriers

Obstacles that impede progress or achievement.

Evaluation

The systematic process of collecting, analyzing, and using information to assess the effectiveness and impact of projects, programs, or policies.

Internal Referencing Strategy

A method in decision-making that relies on an individual's personal standards or experiences, rather than external sources.

Post-only Design

A research design involving measurements taken only after an intervention, with no pre-test comparison.